Novartis not joining the ‘frenzy' of weight loss drugs, CEO says

• Swiss pharmaceutical giant Novartis said Wednesday that it does not plan to enter into the "frenzy" of weight loss drugs.
• CEO Vas Narasimhan said the company was researching treatments that deal with the secondary effects of weight loss, but that it does not plan to compete directly with Novo Nordisk and Eli Lilly.
• Narasimhan said the company saw a $20 billion market opportunity within its growing cancer therapy offering.

The CEO of Novartis said Wednesday that the Swiss pharmaceutical giant does not plan to enter into the "frenzy" of weight loss drugs, preferring instead to focus on areas where it can build a "unique position."

Speaking to CNBC, Vas Narasimhan said that the company was researching treatments that deal with the secondary effects of weight loss, but that it does not plan to compete directly with dominant obesity drugmakers Novo Nordisk and Eli Lilly.

"I think just to follow on the frenzy now would not be the right move for Novartis," he told CNBC's "Squawk Box Europe."

"With obesity right now, we have two very entrenched large players, and I think for future entrants you have to find something new, some sort of new angle that either reduces the nausea and the vomiting or gives patients the ability to lose their weight and retain their muscle," he said, highlighting existing work in such areas within Novartis' research labs.

Obesity drug competition has been ramping up over recent months, with major players such as Roche and Pfizer entering the market, which is estimated to be worth up to $200 billion within the coming decade.

However, Narasimhan said his company was targeting areas "we know we can win." Those include treatments for diseases such as Alzheimer's, Huntington's and Parkinson's, as well as various cancer therapies.

In particular, he said he saw a sizeable market opportunity within its growing radioligand therapies (RLTs), a cancer treatment which targets cancerous cells. So far, the company has made two acquisitions and launched two medicines within the space.

"That's an area where we think we could build a $20 billion-plus business over time and hopefully build a unique position rather than chasing the other markets," he said.

"These are places where I feel like we have the right to win," he added.

His comments come after the company received approval Tuesday from the U.S. Food and Drug Administration for its Kisqali metastatic breast cancer drug to be used to treat patients with earlier stages of the disease.

Novartis shares were down 0.3% by 9:30 a.m. London time Wednesday, after a brief pop at the session open.